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The impact of international students on housing markets

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  • Tatiana Mocanu
  • Pedro Tremacoldi‐Rossi

Abstract

We study the impact of the 2005–2015 international student boom in US universities on local housing markets. By constructing a sample of American college towns characterizing rarely studied local markets in small urban areas, we show that international students exogenously sustained demand for rentals and residential investment, representing counter‐cyclical shocks during the Great Recession. Exploiting the historical distribution of foreign enrolment across college towns and country‐of‐origin networks, we find that international students increased rents by 1.3% and home prices by 2.5% relative to the housing boom peak, translating into home equity gains of $4,000. An analysis exploiting within‐city dynamics reveals that neighbourhoods near campus absorbed international inflows by replacing single‐family homes with apartment rentals. L'incidence des étudiants internationaux sur les marchés du logement. Nous étudions l'incidence du boom d'étudiants internationaux de 2005 à 2015 dans les universités américaines sur les marchés du logement locaux. En créant un échantillon de villes collégiales américaines qui caractérisent les marchés locaux dans les petits secteurs urbains rarement étudiés, nous montrons que les étudiants internationaux soutiennent de l'extérieur la demande de logements de location et l'investissement résidentiel, ce qui représente les chocs contracycliques de la Grande Récession. En exploitant la distribution historique des effectifs étrangers dans les villes collégiales et les réseaux des pays d'origine, nous constatons que les étudiants internationaux ont fait augmenter les loyers de 1,3% et le prix des maisons de 2,5% par rapport au sommet du boom immobilier, ce qui se traduit par des gains de la valeur nette du logement de 4 000 $. Une analyse exploitant les dynamiques au sein des villes révèle que les quartiers situés près des campus ont absorbé les arrivées internationales en remplaçant les maisons unifamiliales par des appartements à louer.

Suggested Citation

  • Tatiana Mocanu & Pedro Tremacoldi‐Rossi, 2023. "The impact of international students on housing markets," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(2), pages 647-675, May.
    • Handle: RePEc:wly:canjec:v:56:y:2023:i:2:p:647-675
    DOI: 10.1111/caje.12651
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